Documente Academic
Documente Profesional
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presenter
Dr John Bishop
executive chairman
Disclaimer
No representation or warranty is made as to the accuracy, completeness or reliability of the information contained herein. Any forward-looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or forecast by Riverside Energy Ltd.
Summary
Riverside Energy:
Has large resources of coal in the UK suitable for both conventional mining and exploitation by underground coal gasification (UCG)
Provides exposure to worldwide demand for thermal and coking coals Is well placed to help fill the UKs Gas Gap (now >50%) and increasing demand for energy security
The Opportunity:
To take significant equity interest through early seed funding
Why?
An exciting time for energy: growth and change
The final solution for sustainable power will be: nuclear fusion?, geothermal?, ?
Hydrocarbons will always be needed for chemical feedstocks, if not for liquid fuels
Gas will be a decades-long source of energy (largest growth)
Why UCG?
Coal is the worlds most plentiful source of energy Making gas from coal is long-established (town gas)
UCG gas (syngas) is all in-situ and reduces carbon output by 50% to 100%. UCG has come of age with directional drilling
Syngas is a versatile gas and can be used for:
Electricity generation
Transport fuels Fertilisers
Oil
Gas
Coal
Why Europe?
Europe has a strong desire for energy security and energy selfsufficiency Europe has high energy costs and a stable, favourable regulatory regime with a 'coal culture
Numerous offtake opportunities in close proximity to production
The UK has near-zero acquisition costs and minimal royalties, plus a common language and history
UCG has a long history in the UK
Why Riverside?
The Projects: very large resources including the Firth of Forth: One of the best UCG sites in Europe The People: engineers and scientists experienced in UCG The Directors: experienced in creating and running resource companies A Plan B: excellent resources of thermal and coking coals suitable for conventional mining
UCG Explained
The same process used to make town gas (at the Gas Works) is carried out within the coal seam. Simplified:
C + H2O = H2 + CO (syngas)
Two boreholes are drilled into the coal seam using directional drilling technology: one injection hole and one production hole A small portion of the coal is burned to provide the heat for the chemical reaction Air / oxygen / steam down the injection hole Syngas up the production hole
UCG Process
Hydrogen-fired power station: zero emissions Gas to liquids plant Syngas clean up, CO2 separation & sequestration
UCG vs CSG*
UCG Energy Source Coal CSG Gas in Coal
Gas Produced
Energy Extracted De-watering required Fraccing Subsidence
Syngas
50-100% No No Possibly
Methane
<5% Yes Often No
Low
High
CSG
Advanced Coal-Fired
UCG
Previous EU Pilot
Riverside: UK
ENN: 2.5 yrs 5MW operation LNC & CNX pilot plants
Corporate
Riverside Energy Ltd: A pre-IPO Australian Underground Coal Gasification Company with UK subsidiaries holding the licences (REL: 100%) Seed capital raised to date: $2M
Riversides Projects
Firth of Forth
Whitehaven
Amble
Liverpool Bay
* * * * *
Six granted UCG licences + two applications, REL: 100% Inserts show licence boundaries & seismic coverage Areas chosen for previous mining & good infrastructure CCS / EOR potential in North & Irish Sea oil/gas fields Negotiating for onshore licences
Thames Estuary
Extensive offshore workings beneath the Firth of Forth. RELs licences in solid red.
Riversides Strategy
1. 2. 3. 4. 5. Acquire a portfolio of large-tonnage UCG permits, in stable regions with high energy costs and a strong desire for energy security: DONE Acquire experienced team of engineers to design, build and operate syngas plant: READY Locate site for first operation and obtain offtaker agreements: UNDERWAY Procure sufficient funding for pilot gas flaring: NEXT STEP* Listing planned post pilot flaring to maximise valuation
Supplementary Slides
The FoF is well placed to provide commercial quantities of UCG gas for power stations and industrial complexes located along its shoreline. (DTI, 2006)
Riversides Firth of Forth UCG Project. Schematics and quotes from UK Dept of Trade and Industry 2006 report: Creating the Coalmine of the 21st Century, The Feasibility of UCG under the Firth of Forth
Multiple shallow seams of high calorific value thermal coal overlie the UCG targets.
These seams were mined in the adjacent Ellington Mine (closed 2005), and Were extensively explored by the National Coal Board in the 1980s. Recent evaluation for Riverside suggests a net (ie, saleable) tonnage of at least 80Mt.
Amble thermal coal : Riverside licence boundary in red, Ellington mine licence in purple, NCB exploration in solid blue
Multiple shallow seams of high calorific value thermal coal overlie the UCG targets.
These seams were mined in the adjacent Ellington Mine (closed 2005), and Were extensively explored by the National Coal Board in the 1980s. Recent evaluation for Riverside suggests a net (ie, saleable) tonnage of at least 80Mt.
Amble thermal coal : Riverside licence boundary in red, Ellington mine licence in purple. Plus NCB exploration borehole collars (in green) and seismic lines
At Whitehaven, seams of metallurgical coal sub-crop close to the coast and dip offshore.
900m long access drifts from 1990s operation, may allow a quick and low-cost pre-mining development
Excellent infrastructure including working railway within 100m of planned portal Total tonnage is estimated at ~1Bt with a significant proportion suitable for mining.
Whitehaven coking coal : two offshore and one onshore licences. Showing some borehole collars (in blue) and seismic lines
2.
(Capex ~ 100M)
Assuming an overall life of mine cost (ie capex+opex) of 1 per GJ (LLNL quote US$1.36 per GJ and Carbon Energy, AU$1.25 per GJ), then: Net Revenue is ~56M for every 1Mt of coal gasified
----------------Note: most companies are planning for an on-site value-adding activity: eg, gas-to-liquids (Linc); electricity generation (Carbon); fertiliser (Liberty)
(Syngas from 1Mtpa (gross) will power ~200MW power station)